Category Archives: CHS Office
Office related news
Blackbaud is adding more jobs, this time another 300 slots, to its already 3,100 jobs in the region. In the Fall, they will begin building a $154M, 360,000 SF office building that will open in 2018 near its headquarters campus on Daniel Island. That’s the biggest employment announcement since Volvo announced its $500M manufacturing plant in 2015, shortly after Mercedes announced a similar investment to build Sprinter vans expansion. Thad Moore has the story about Blackbaud here for The Post and Courier.
Sales of investment properties in the CHS region – apartments, office buildings, shopping centers and the like – exceeded $1 BILLION for the first time ever in 2015. A few highlights from our Colliers Year-End 2015 Investment Sales report:
- Multi-family led the way with over $520M in sales volume, an average price per door of $114k, with newer class A communities often exceeding $200k/unit
- Sales of shopping centers were next at $131M in 2015, averaging $133/SF, led by the Wal-Mart anchored North Pointe Plaza in N CHS at $32M, and Shoppes at Centre Pointe at $16.5M then West Ashley Shoppes at $15.5M
- Office buildings totaled $123M and averaged $214/SF; the largest building sale, at $28.4M, was that of Parkshore in West Ashley but it was to a user, MUSC. The biggest investment sale was that of 3955 Faber Place to a NY-based advisor at $13M or about $200/SF
Read all about it in our Colliers Year-End 2015 report. You can request yours by pinging me at firstname.lastname@example.org
Gramling Brothers Real Estate & Development is planning to re-develop the architectural “embarassment” of a 1970s suburban branch bank and exchange it for a 4-story office building at the corner of Meeting and Calhoun Streets across from Marion Square. They bought the site, at 317 Meeting Street, for $3.5M earlier in 2015. Their plans call for what appears to be about a 50k SF office building; unfortunately, much-needed parking for office tenants does not appear to be part of the plans submitted to the city. See the article here by John McDermott of The Post and Courier.
The $80M Midtown mixed-use development at King and Spring Streets that includes some 443k SF of space within two hotels, an 8-level parking deck, plus retail, restaurants and offices will open late this month. Warren Wise has the latest here for The Post and Courier.
Sentinel Real Estate, which paid a record $214k/u for some apartments in Mount Pleasant, has bought the fully leased, 62.6k SF three-story office building at 3955 Faber Place in Lower N CHS for $13.05M or about $208/SF. John McDermott of The Post and Courier has the article here.
If an office user is looking for 10,000 SF or more in Charleston, they have a handful of options, especially for quality Class “A” space and if they need 20k SF (enough for about 100 employees), and the options are even fewer. Yet demand is at its highest point since 2002 with a 90.2% overall occupancy in the metro area’s 12.2MSF of office space and it is 95% in the 2.6MSF Lower N CHS Class A/B sub-market, all according to the Colliers International Q2 2015 Office Market Report. At an average Class A downtown rent of $32.60/SF, CHS’ CBD rents are the highest in the Southeast U.S., outside of Fort Lauderdale and Miami – yep, higher than rents in the downtown areas of Charlotte, Atlanta, Raleigh, Nashville and Tampa and all the markets in between. And, suburban office rents are the 4th highest in the Southeast, behind the same three and just behind Nashville. That is all the result of office-using employment at the highest point ever in the Charleston region (all available at the following link for Colliers Q2 2015 Office Market Report for Charleston).
But office development is underway from the Cigar Factory renovation and 385 Meeting Street former AT&T Building downtown to the Anchor Center renovation of a long-vacant 156k SF former Navy Base building at Noisette, to the new Faber Plaza 125k SF office building at Leeds Ave and I-526 in Lower N CHS and Holder Properties recent delivery of a 75k SF office building at Daniel Island. Many are pre-leased and leasing up during construction, while others like the new Faber Plaza are speculative, but expected to be win by default as large blocks of space are at a minimum, at a premium, and the demand continues. John McDermott of The Post and Courier has the story on the lack of new development, yet continued demand and rents pushing up, all resulting in some still limited new development. We at Colliers believe we could use more.
The Medical University of South Carolina will consolidate some 300 back-office employees into Parkshore Centre, a recently-purchased 30-year old office building in West Ashley. MUSC paid local developer Durlach Associates some $28.4M ($242/SF) for the renovated and LEED certified 117k SF 3-story multi-tenant building where they already occupy about one-half of the building. Similarly, Roper St. Francis Healthcare is building a $28M, 130k SF building in Palmetto Commerce Park where it plans to consolidate some 600 non-clinical workers in early 2016. John McDermott of The Post and Courier has the story here.
Three years in the Lowcountry, Greenville-based Southern FIrst Bank plans to build a small office building at 80 Calhoun Street downtown. In June, the bank paid $1.8M for the site at the northeast corner of Calhoun and Elizabeth Streets. John McDermott of The Post and Courier has the article.
AZ-based Healthcare Trust of America announced it paid some $10.6M for a 40k SF building occupied by MUSC at 8992 University Blvd. in N CHS, its fifth purchase since 2010, now totaling some $65M. John McDermott has the story here for The Post and Courier.
Origin Development Partners LLC, headed by local investor Tony Kassis, has purchased the offices for law firm Womble Carlyle in downtown CHS, plus three nearby surface parking lots. The law firm will lease back the buildings. No pricing has yet to be determined, per the article by John McDermott of The Post and Courier.